At the time of the last OECD Economic Survey in 1990, what is now the Federal Republic of Yugoslavia (FRY) appeared poised to occupy a position in the vanguard of economic transition in Europe.1 In comparison to the other European transition countries at the time, Yugoslavia boasted more developed market institutions, greater integration into the world economy, more foreign direct investment, and a higher standard of living. While the 1980s proved a difficult period for output, incomes, and inflation, the government showed a renewed determination towards the end of the decade to stabilise and liberalise the economy, and launched a privatisation programme...